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October 9, 2026
Chart of the Day
The Philippines’ gross international reserves (GIR) fell to USD 99.997 billion in September, marking an 8.31% year-on-year decline and the lowest level in three years, as the BSP used reserves to support the peso amid heightened depreciation pressures. The decline was also driven by foreign debt payments and downward valuation adjustments to gold and foreign-currency assets. Despite the drop below USD 100 billion, the BSP said reserves remain sufficient, covering 6.3 months of imports and 3.2 times short-term external debt. Sources: Bloomberg, Businessworld
Financial market updates
The USD/PHP exchange rate opened 10 centavos lower at 62.65 on Thursday on light agent dollar supply, but quickly rebounded to 62.78 as corporate and fixing-related demand emerged.
The pair traded mostly sideways within the 62.77-62.80 range throughout the afternoon.
Late-session buying, supported by a surge in offshore non-deliverable forwards, pushed the pair to an intraday high.
The USD/PHP pair ultimately closed at 62.90, or 15 centavos higher day-on-day.
Current support levels of USD/PHP remain at 62.35/55, while the resistance levels are 62.925/63.00.
Local government securities (GS) yields surged at the open on Thursday as aggressive selling persisted after a hotter-than-expected inflation print, led by dealers and offshore accounts.
The 8- to 10-year sector bore the brunt of the sell-off, particularly FXTNs 10-73 and 10-74, as yields breached the 8.00% psychological level and climbed to multi-year highs of 8.10% and 8.17%, respectively.
At elevated yields, strong buying interest from dealers and institutional investors emerged, pulling yields back to around 8.00%-8.05% in the belly of the curve.
Selling pressure was evident across the curve, with 5-year FXTN 20-17 as the day’s worst performer, ending 20 basis points higher at 7.70%.
Looking ahead, expectations of a Bangko Sentral ng Pilipinas rate hike may keep upward pressure on yields, although bargain-hunting demand and a potentially larger-than-expected RTB 02-01 issuance could provide support to the local bond market.
The Philippine Stock Exchange index (PSEi) ended 126.30 points lower at 5,610.39 on Thursday, as profit-taking accelerated and investors turned more defensive amid lingering macroeconomic uncertainty.
The selloff was dominated by International Container Terminal Services Inc. (-91.31 points), while Bank of the Philippine Islands (-11.29 points) and SM Prime Holdings Inc. (-8.45 points) added to the drag.
Meanwhile, gains in SM Investments Corp. (+6.18 points), Monde Nissin Corp. (+1.92 points), and San Miguel Corp. (+1.34 points) provided some limited support.
Value turnover rose to PHP 6.37 billion, while foreign investors remained sizeable net sellers at PHP 1.17 billion, with market breadth weakening to 112 decliners versus 73 advancers.
Overall, the session underscored fragile sentiment, with selling in key heavyweights overwhelming pockets of strength as elevated yields and lingering inflation concerns continue to cap risk appetite.
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